The term “mobile processor” refers to a range of
processors used in mobile CE devices, often referred to as
applications processors and central processing units (CPUs). These
highly flexible mobile processors are used in multifunction devices
that combine computing, communications, entertainment, and/or
productivity capabilities. Mobile devices include e-readers,
handheld game consoles (HGCs), mobile PCs, portable media players
(PMPs), smartphones, and tablets. New NPD In-Stat (www.in-stat.com)
research, reports that the growth of mobile processors in 2011
exceeded 43% and is forecast to grow at a 22% CAGR through
2016.

“Although the total available market for mobile processors
continues to grow, the emergence of industry leaders in the
high-growth mobile device segment is becoming a key factor in the
success of processor vendors,” says Jim McGregor, Chief
Technology Strategist. “Just having a captive smartphone and
tablet market has propelled Apple into second place for the entire
mobile processor market just behind industry leader Intel. In 2012,
Apple will likely capture the top spot, in terms of unit shipments,
driven by the success of its iPhone and iPad. Other companies that
benefitted greatly from new product releases or dominance by their
OEM customers included Nvidia, Texas Instruments, Qualcomm, and
Samsung.”

Key research findings include:

For all mobile devices, ARM is the dominant processor
architecture with over 73% of all units shipped and is
growing.

Intel's dominance continues in mobile PCs, while Apple,
Qualcomm, and Samsung claim the top spots in other CE
devices.

Smartphones and tablets represent the greatest opportunity for
growth with a combined 75% growth in 2011 and 29.3% CAGR expected
through 2016.

In-Stat anticipates consolidation in the mobile processor
market beginning in the 2013/2014 timeframe.

The release of Windows 8 later this year will be a pivotal
point in the competition between the ARM and x86 processor
architectures.

This market Alert is drawn from the In-Stat
research,
Mobile Processor Architectures, Devices, and Market Shares,
Q4'11 (#IN1204993SI), which examines the vendors,
markets, and issues surrounding the mobile processor market. As the
first in a quarterly series of reports on mobile processors and
mobile graphics, the mobile processor report provides in-depth
analysis on key issues in the market as well as unit forecasts:

Analysis of key issues potentially impacting the market,
including the battle between ARM and x86, the pending release of
Windows 8, the make vs. buy decision, differentiation and
integration, the growth of the low-cost segments, industry
consolidation, technology adoption and migration, manufacturing,
and legal issues

This research is part of In-Stat's Mobile Technology service,
which provides analysis of the market for technologies, IP, and
semiconductors that enable next-generation mobile devices,
including processors, graphics, modems, GPS, displays, memory,
storage, operating systems, software, and human interfaces.